Electrical Contractor in Karnataka: How Do You Handle Overtime Pay Disputes?

Greetings from Ru-Ah! I run a business as an Electrical Contractor, and for my employees, I ensure correct payment for overtime. However, they are not satisfied and often request additional overtime payments. Can anyone suggest the legal and precise overtime calculations as per the Karnataka Shops and Establishment Act? This information will help me address their concerns effectively. Suggestions are welcome.

Overtime Payment Calculation Inquiry

How have you been paying the overtime to those employees? Have you calculated it, and if so, what is the calculation for overtime to the best of your knowledge? In this forum, we would definitely like to know about your implementation methods.

Even though the overtime is paid doubly, the calculation method is to divide the per day Basic + DA by 8 hours, then multiply by 2 and finally by the number of overtime hours worked. This calculation is in accordance with the Karnataka Shops and Commercial Establishment Act.

Brief Calculation Method

Per day (Basic + DA) / 8 x 2 x Number of hours of Overtime

Thank you.

We have been paying them a total of gross/26/8 x 2 x number of OT hours (e.g., 600 x 26/8/2 x No. Of OT).

I thank you for your reply.

Regards,
Ruah Enterprises